HR is not about human resources. It is about how the value, capability and competencies of every level of leadership bring to the stakeholders.
With the interconnected world, contract manufacturers like Foxconn, Flexitronics, Solestron, Celestica, Venture Manufacturing etc, plays a key role in the whole supply chain continuum. When one of these breaks down, the impact represents the supply chain risks, and MNCs will need to consider quickly the options for alternative contract manufacturers. A good example of this risk was the recent credit gridlock that resulted in a trade paralysis when trade financing suddenly stopped.
When Terry Gou of Hong Hai (Foxconn) waited for 9 deaths to take action, he raised the supply chain risks of all the multinational corporations that put their trust in his company. His turnkey and contract manufacturing customers suddenly raised concerns with his uncaring attitude. In the end his lack of speedy public relation damage recovery will turn his supporters against him
This disastrous inertia may be attributed to leadership and complacency of its leaders. It also raises questions over the competencies of managers down the line and their ability to do damage control and rectify the situation.
What can HR professionals learn from incidents like these to minimize their companies' exposure to supply chain risks and business continuity?